With the help of the Band Protocol, the DeFi hub, Acala is launching an aggregated oracle network called “the Open Oracle Gateway” on its Polkadot ecosystem. Acala group has expressed their gratitude for having the leading oracle service provider by their side.
Band Protocol is also excited to work with the leading DeFi hub Acala on developing the Open Oracle Gateway and towards accomplishing the common goal of uniting the decentralized oracle service providers, thereby enhancing the security and integrity of cross-chain DeFi networks.
The new network will provide open and progressive decentralized data for Acala, Kusama, and various other platforms running on the Polkadot ecosystem. Previously, Acala alone operated its oracle networks for aggregating various oracle services in one place, thereby allowing applications to independently choose between various oracle service providers based on their needs.
With the launch of this new Open oracle gateway, users can themselves pull data by trusting all other providers in the network, which marks a revolutionary change for the DeFi hub Acala. In addition to this, with the launch of the new oracle network, each price feed posting to Acala or each oracle transaction irrespective of which network provider they belong to, will now be filed by a process called “Quality of Service.” As opposed to the system critical transactions, the operational transactions (submitted by the operator) will be treated as high-priority transactions regardless of the level of network congestion.
Moreover, there will be customizable transaction fees, and there will also be a possibility to return fees if found valid, thereby making oracle price feeds “free” while preserving integrity. But for this, an approved operator would be required to sign the valid feed transactions, with only one transaction permitted by the same Operator within a single block. This will prevent invalid or out-of-date price feeds from arising due to the spikes in the gas fees or congested networks.
Band Protocol has been leveraging multiple oracle solutions for years, to leading platforms like Coinbase, to mitigate human errors and reduce the dependencies on immutable smart contracts codes and centralized interferences. Now, with this strategic partnership with Acala, the DeFi hub would be able to operate its oracle networks and also provide price feed services.
Acala is the first-ever project built to deliver multiple DeFi protocols such as cross-chain level applications and algorithmic stablecoins. The DeFi startup is based on a blockchain framework called “Substrate” that can run natively with the Polkadot ecosystem to boost economic and transactional scalability. Sourcing off-chain data for on-chain operation needs a robust and reliable decentralized oracle network for evaluating the liquidation risks and borrowing capacities of the platforms. Integrating with Band Protocol has made Acala more robust and reliable for multiple oracle solutions to achieve maximum decentralization and security.